Help save HAL - buy CCL stock ! (?)

[ekkc10753]

Would it help our lovely HAL survive if we all bought some more shares of CCL?

Would that help their bottom line? Are stocks an important way that companies make money and survive bad times? I'd buy some more if it would save our ships!

 

Full disclosure: I've owned shares for years because I really like HAL, but I know nothing about structuring, restructuring, bonds etc - I looked at previous thread about "financials" and couldn't make heads or tails out of it!

 

 

[bouhunter]

They would be better off if anyone wanting to "help" them booked a cruise.

[wyobean]

You should consult your financial planner about your own financial situation. 

[garycarla]

yes, good idea.

 

But many of us living off our 401k which took a 20% hit.  Worried it will go down more.  Worried that ANY stock I buy will go bust and be worth nothing.

 

Just sayin.

[Captain_Morgan]

the stock dropped 30% yesterday alone and is currently down 5% in early trading today...

 

the 52 week high was approx. $56 per share and today its now just over $8 per share...i think its going to be a good while before it gets back up to those numbers if not reasonably close and purchasing stock to 'help' them is more likely going to be unhelpful to your investment portfolio in the immediate and likely near future term.

[ekkc10753]

oh well, seemed like a possible good idea.

I do have stock from the heady days when it sold in the $60 range and I'll buy 100 today and consider it a charitable contribution or longterm investment, depending on my mood

 

And I'll look forward to better days at sea on our 21 day cruise booked for Feb 2021!!

[HappyInVan]

Is this a dumb idea or a very dumb idea?

 

CCL had a recent round of fund raising. Sold 3-year notes for 11.5% in interest. Sold shares (10% of shares outstanding) at $8. No wonder the share price collapsed in the last 3 days. That's what the pro are paying for CCL.

 

As an investment, you'll be better off buying the secured debt. Almost all of the company's assets have been pledged as collateral. Don't buy the stock for a long term investment until there's a vaccine.  

 

For Happy Cruisers, you'll be better off making deposits on cruises in 2021. Minimize your exposure.

 

 

[jingle5616]

1 minute ago, ekkc10753 said:

oh well, seemed like a possible good idea.

I do have stock from the heady days when it sold in the $60 range and I'll buy 100 today and consider it a charitable contribution or longterm investment, depending on my mood

 

And I'll look forward to better days at sea on our 21 day cruise booked for Feb 2021!!

Buying stock in CCL will not help CCL.  That money used in your purchase will go to the seller of the stocks, not CCL.

[The Beaver]

Carnival Corp. & plc estimates liquidity requirements of roughly $1bn per month, according to a William Blair note. 

The brokerage broke down the needs as Carnival Corp. acted to boost liquidity by an additional $6.45bn from notes and share offerings announced Tuesday. Combined with roughly $1.1bn from CCL's suspended dividend program, William Blair analyst Sharon Zackfia said, company management believes it has enough liquidity available through the end of fiscal 2020.

 

 

https://www.seatrade-cruise.com/news/carnival-corps-liquidity-needs-about-1bnmonth-william-blair

[DaveOKC]

From what the financial press is reporting, CCL should have enough cash to weather this storm, due to the recent stock  issuance, new bonds and convertibles.  HOWEVER, if the virus stays around longer than we thing OR consumers change their cruising patterns, it could get real ugly!  

 

Due to the recent dilution of the stock, we are VERY unlikely to see $50/share again for a very long time IMO.

[KirkNC]

1 hour ago, jingle5616 said:

Buying stock in CCL will not help CCL.  That money used in your purchase will go to the seller of the stocks, not CCL.

Exactly!

[Himself]

Is CCL stock a good buy right now?

[Boatdrill]

2 hours ago, jingle5616 said:

Buying stock in CCL will not help CCL.  That money used in your purchase will go to the seller of the stocks, not CCL.

Always better for a company to have a buyer than a seller. 

 

[ABoatNerd]

With people losing 20-50% of their life savings, not buying any discretionary spending shares.

Neither will I be booking a cruise anytime in the future, for many reasons, not all related to the virus.

 

Fundamental services and products only.

 

 

[cbr663]

9 minutes ago, Himself said:

Is CCL stock a good buy right now?

Depends on your financial goals.  If your goal is to make a quick buck and buy it $8.00 and sell it if it goes to $9 or $10 - maybe.  If your goal is to hold it long term hoping that it will return to $50, well, you are betting it will still exist long term.  There is so much uncertainty in the world today that personally, that isn't one I would roll the dice on.

[ezd222]

3 hours ago, ekkc10753 said:

Would it help our lovely HAL survive if we all bought some more shares of CCL?

Would that help their bottom line? Are stocks an important way that companies make money and survive bad times? I'd buy some more if it would save our ships!

 

Full disclosure: I've owned shares for years because I really like HAL, but I know nothing about structuring, restructuring, bonds etc - I looked at previous thread about "financials" and couldn't make heads or tails out of it!

 

 

As someone who understands the financials, they are not good.  The restructuring deal while necessary was done on poor terms.

 

If you want to support HAL buy cruises, not stock. They need to show demand to the street. Once they do that, institutional will by the stock in bulk and that will ultimately drive the stock price up. It's critical for upcoming earning reports/call that new demand still exists. If not large buyers will continue the selloff.

[ekkc10753]

I have a deposit on a 21 day winter cruise in 2021, maybe then instead of buying 100 shares at $8, I'll make a deposit on another cruise! It'll give us something to look forward to while we wait for the governor of PA to allow liquor sales to resume in our state and might help demonstrate demand too!

[Paulinda]

1 hour ago, Himself said:

Is CCL stock a good buy right now?

Well Father, it's a very risky investment right now.   Hopefully a covid 19 vaccine will be developed soon. warmer weather will lessen the number of new covid 19 cases and a cure for those suffering from the affects of the illness will be found.  Those factors will determine if and when CCL is a good stock to own. 

 

Best wishes

[Sailor Taylor]

I bought back when it was 40 something. 😭

 

Still if CCL survives I think it's a good buy.  But I'd want a few more weeks of not months to be sure.  For me at least it will neutralize my bad buy at 40 a little. 

[skittl1321]

I've thought about purchasing, because I do think CCL will continue to exist as a company.

 

However, if they declare bankruptcy and reorganize, that stock is worth zero.

 

In the past I've wanted to buy stock for on board credit on Carnival; but that program is not a given (nor are it's dividends).  I'm no longer cruising Carnival, but have looked at HAL (for Antartica) and Princess.  

 

In the end, I think it's too much of a gamble for me. $800 isn't much to lose, but I think the chance of bankruptcy to discharge debt is very real.

[Jimbo59]

If cruise companies go bankrupt, their stock becomes worthless.

[LMaxwell]

4 hours ago, Himself said:

Is CCL stock a good buy right now?

 

Too much volatility prevents it from being a "good" buy.  It is merely "cheap".  Whether that is good or not depends on your investment strategy and whether you are buying it with play money, or money you can not afford to lose. 

[drowelf]

9 hours ago, jingle5616 said:

Buying stock in CCL will not help CCL.  That money used in your purchase will go to the seller of the stocks, not CCL.

Correct. Only when a company does an IPO or issues additional shares of stock, does the money go directly to the corporation. Now CCL did just issue an additional 1.5B? Shares, so any recent purchase may have contributed to the company coffers, but most like went to some other investor. I jumped back in today at about $8, so will see how it does over the next few years. Don't expect any dividends for quite a while, but if the industry recovers any, I should make some $$$. 

[JeffElizabeth]

5 hours ago, Jimbo59 said:

If cruise companies go bankrupt, their stock becomes worthless.

At $8 a share, I am willing to take the risk. 

[richwmn]

55 minutes ago, drowelf said:

Correct. Only when a company does an IPO or issues additional shares of stock, does the money go directly to the corporation. Now CCL did just issue an additional 1.5B? Shares, so any recent purchase may have contributed to the company coffers, but most like went to some other investor. I jumped back in today at about $8, so will see how it does over the next few years. Don't expect any dividends for quite a while, but if the industry recovers any, I should make some $$$. 

Carnival Corp is issuing new shares

MIAMI, March 31, 2020 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest leisure travel company, today announced that Carnival Corporation (the "Corporation") has commenced an underwritten public offering of $1.25 billion of shares of common stock of the Corporation. The Corporation intends to grant the underwriters an option to purchase up to $187.5 million of additional shares. The Corporation expects to use the net proceeds from the offering for general corporate purposes.

https://www.nasdaq.com/press-release/carnival-corporation-plc-announces-offering-of-common-stock-2020-03-31

so the proceeds from the sale of the new issue would go directly to the Corporation (they are the seller).